No pay-in, pay-out in E-gold, E-silver on October 3-4, says NSEL

Business

Staff

Posted By: Staff

Published: Friday, October 4, 2013, 9:41 [IST]

Subscribe to GoodReturns

NEW DELHI: Following Bombay High Court directions, crisis-hit spot exchange NSEL said it will not make pay-in and pay-out for redemption of e-series contracts covering gold and silver during October 3-4.

On September 27, NSEL has announced a faster route to settle dues of investors in e-series products by way of financial settlements from October 3 to October 9.

E-series contracts are those in which retail investors can buy and sell commodities in demat form. "As per the directions of Bombay High Court, the Exchange has been advised not to make any pay-outs or give delivery in physical form of the commodities, including gold and silver in respect of e-series contracts till October 4, 2013," NSEL said.

The exchange said that there will not be any commodity pay-in and pay-out and funds pay-in and pay-out on pay-in for redemption of e-series contracts for settlement of gold and silver for October 3-4.

The exhange will not derive and disclose any redemption price of E-Gold and E-Silver contracts on these two days on its website, it said.

National Spot Exchange Ltd (NSEL) is facing the problem of settling Rs 5,500 crore dues to 13,000 investors. The exchange has so far managed to pay only about Rs 150 crore on a weekly basis out of the dues of Rs 5,600 crore.

It has defaulted for six consecutive weeks, while the seventh payout could not be undertaken following freezing of NSEL accounts by Economic Offences Wing (EOW) of Mumbai police.